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SuperValu Settles (Albertsons) Overtime Lawsuit
~ Worker payments will average $7,000 each for working 'off the clock' and being denied overtime
March 23, 2007 · Idaho Statesman
After waiting more than a decade, thousands of Albertsons employees will share $53.3 million to settle allegations that the former Boise-based company forced workers to work "off the clock" and didn't pay overtime.
More than 7,000 employees will receive an average of about $7,000 each, with some receiving payouts as high as $28,000.
Minnesota-based SuperValu, which bought Albertsons last May, agreed to the settlement and also agreed to pay $6.5 million in attorney's fees.
U.S. District Judge B. Lynn Winmill approved the settlement Thursday in Boise. The settlement stems from 10 federal and state lawsuits filed between March 1996 and October 1997, including one from an employee at an Albertsons in Mountain Home. The lawsuits were ultimately consolidated into a class action. The United Food and Commercial Workers union backed the lawsuits.
The employees alleged that Albertsons required them to perform work they weren't paid for or improperly classified them as exempt from overtime pay under federal law. Lawyers representing the employees said it's unusual for lawsuits like these to drag on so long, but said the settlement amount is significant.
"This is among the highest settlements you'll find anywhere," said Rick Blumberg, with Webster, Mrak and Blumberg, the Seattle-based firm that represented the employees. "A significant justice was done, and we feel very good about it."
SuperValu released a statement Thursday saying it was pleased to have finally resolved the longstanding dispute.
"As we work to build a best-in-class organization, SuperValu believes that it is in the best interests of the company and our associates to reach agreement on all these claims," the company said. "SuperValu is committed to full compliance with all laws governing the work place. We expect that all associates will be fully paid for all work performed and that no work will be performed off the clock."
Blumberg said only about five employees did not agree to settle and decided to continue separate legal actions.
Most of the allegations came from employees working at Albertsons stores in California, but there were also claims from other states, including Idaho. Mountain Home store employee Lori Barton filed her lawsuit in April 1997. She claimed she worked more than 100 overtime hours without compensation.